Measuring Digital Trade
Event report
Speakers:
- Barbara D’Andrea Adrian
- Daniel Ker
- Antonella Liberatore
- Patrick Quill
Moderators:
- Joscelyn Magdeleine
Table of contents
Disclaimer: This is not an official record of the IGF session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the IGF's official website.
Knowledge Graph of Debate
Session report
Audience
During the presentation, various topics were discussed, including digital trade, data collection, and statistics. One audience member questioned the value of gathering information on digitally ordered goods and services. Despite this doubt, it was highlighted that there is a growing interest in having better data on actual services trade, digital trade, and the flow of money involved in paying for a service or a good.
The joint efforts of prominent international organisations were also recognised as contributing to the establishment of the report. A team of four people who handled the complex tasks in a collegial manner worked on the report, which received positive sentiment.
The importance of capacity building to support National Statistical Agencies in monitoring progress towards the Sustainable Development Goals (SDGs) was emphasised. It was noted that a major push is being made to improve the abilities of national statistical agencies to monitor progress towards the SDGs. This alignment with collecting data about the digital economy is crucial.
Investigating two World Customs Organization categories, namely low-value dutiable and low-value non-dutiable, could provide valuable insights into business-to-consumer (B2C) trade. These categories are significant as most B2C operations fall within them.
Concerns were raised regarding the accuracy of transactional data for digitally ordered goods. The tension between CIF (Cost, Insurance, and Freight) and FOB (Free on Board) values makes it difficult to capture the exact trade values. It was observed that the backend transactions are not fully capturing the CIF values.
Queries were raised about the inclusion of digital payments in reported statistics, specifically whether digital payments are counted as 'trade in service' or fall into a different category. However, no specific evidence or argument was provided in relation to this query.
Additionally, some attendees sought clarification on the use of definitions for the publication. Mario Postolov, the Regional Advisor in the Trade Division of UNECE, is responsible for publishing and continuously updating a glossary on trade facilitation terms. This glossary is part of the effort to provide clarity in the publication.
Furthermore, the inclusion of postal data in future reports was discussed. Hossam Garbi, responsible for the Trade Program in the Universal Postal Union (UPU), highlighted that the majority of international shipments transit through the postal network. The UPU expressed a positive interest in cooperating for the inclusion of postal data in future reports, demonstrating their global vision on all e-commerce transactions and their efficiency.
In conclusion, the presentation covered various topics related to digital trade, data collection, and statistics. While some doubts and concerns were raised, there was also recognition of the joint efforts of international organisations and the importance of capacity building for National Statistical Agencies. The inclusion of postal data in future reports and the need for better data on digitally ordered goods and services were discussed.
Dan
The analysis explores the significance of digitally ordered trade and the methods used to measure it. Digitally ordered trade refers to the international sale or purchase of goods or services carried out over computer networks. It closely aligns with the definition of e-commerce established by the OECD in the early 2000s. One notable point emphasized in the analysis is that digitally ordered trade encompasses both goods and services and is applicable to all sectors of the economy.
To measure digitally ordered trade, the analysis recommends using business ICT surveys and merchandise trade customs reporting procedures. Business ICT surveys are valuable tools for assessing the uptake of e-commerce in businesses and can provide insights into the value of digitally ordered transactions. Notably, some countries, including China, have modified their merchandise trade customs reporting procedures to identify shipments that are digitally ordered.
In addition to these methods, the analysis highlights the importance of other sources for gaining a comprehensive understanding of digitally ordered trade. This includes household surveys, which can examine areas such as ICT usage and expenditure, providing valuable data on consumer behavior. VAT returns data and card payments data are also mentioned as additional sources that can provide insights into digitally ordered trade. Moreover, multinational enterprise surveys are highlighted as particularly useful for understanding digital trade due to the significant role of multinational enterprises in the trading system.
The analysis discusses the role of digital intermediation platforms (DIPs) in the digital trade ecosystem. DIPs are online interfaces that facilitate direct interaction between buyers and sellers, without the platform taking economic ownership of the goods or services being sold. They offer advantages such as access to a wider global market, particularly beneficial for smaller businesses. The analysis points out that transactions on DIPs have significantly increased during the pandemic. DIPs are seen as key drivers in the digital transformation of trade due to their ability to enable new business models, such as resource sharing, and to facilitate sales through online platforms.
An important insight provided in the analysis is the distinction between real-life transactions and economic transactions involving DIPs. In real life, a buyer pays the DIP, which deducts its fees and pays the remainder to the seller. However, for accurate trade statistics, it is recommended to separate these two transactions: the payment for the actual good or service and the payment for the intermediation service. To achieve this, enterprise surveys, ICT usage surveys, and potentially card payment data can be utilized to collect the necessary information.
The analysis also highlights the potential of DIPs in the digital trade landscape and their role in increasing the share of least developed countries (LDCs) in global trade. It notes that digital ordering and delivery can enable practitioners in remote areas to supply services to businesses and homes worldwide, thus benefiting LDCs. However, the analysis also mentions that the target of doubling the share of LDCs in global trade by 2020, as part of the Sustainable Development Goals (SDGs), was not met. Implementing the handbook's framework is seen as crucial for achieving a clearer digital trade landscape.
Measurement of digital trade in LDCs is deemed essential to monitor its contribution to achieving the revised SDGs target. The analysis suggests including customs data and estimations for non-dutyable trade to obtain a comprehensive picture when measuring digital trade. It also proposes using postal data to estimate the volume of low-value, digitally ordered goods trade, as there is a correlation between the volume of postal packages crossing borders and digital trade.
In conclusion, the analysis underscores the significance of digitally ordered trade and the need for accurate measurement methods. It suggests that a more comprehensive understanding can be achieved through surveys, customs reporting procedures, and the utilization of various data sources. Additionally, the analysis highlights the role of DIPs in the digital transformation of trade, particularly in facilitating access to a wider market. Furthermore, it emphasizes the importance of separating real-life and economic transactions involving DIPs for more accurate trade statistics. Finally, it addresses the potential of digital trade for LDCs and the importance of measuring its impact to achieve the SDGs target.
Overall, the analysis provides valuable insights into the definition, measurement, and impact of digitally ordered trade, as well as the role of digital intermediation platforms and the need for comprehensive measurement methods in the digital trade landscape. It underscores the potential of digital trade in driving economic growth and its implications for achieving sustainable development goals.
Antonella
Efforts to measure digital trade have been ongoing since the late 1990s. The World Trade Organization (WTO) launched a work programme on e-commerce in 1998 to address the growing prominence of digital trade. Additionally, the Organisation for Economic Co-operation and Development (OECD) developed a definition for e-commerce in the early 2000s. These initiatives reflect the recognition of the need to understand and quantify the impact of digital trade on the global economy.
However, despite these efforts, there is still a lack of official statistics on digital trade. Unlike merchandise trade and services trade, there are no comprehensive and standardised measurements for digital trade. This poses a challenge for policymakers as they require accurate and reliable data to formulate effective policies in all economies and at all levels of development.
One of the key arguments is the need for a clear distinction between the concepts of e-commerce and digital trade. E-commerce refers to the ordering of goods and services, both domestically and internationally. On the other hand, digital trade includes not only the ordering but also the delivery of goods and services, specifically at an international level. It is important to understand this distinction to accurately measure and monitor digital trade.
Monitoring and measurement of digital trade is crucial as it allows for the identification of barriers and problems that may hinder its growth and development. By monitoring its evolution, policymakers can take appropriate actions to address any issues that arise. Additionally, measuring digital trade can help countries access new markets, increase opportunities for businesses, and contribute to overall economic growth.
The broad conceptual framework for digital trade is fairly stable and established. However, there is still ongoing work in interpreting and measuring certain aspects, especially in relation to platforms and other emerging areas. The framework is designed to be future-proof, capable of accommodating changes in the production boundaries and incorporating new macroeconomic standards that will be introduced in the coming years.
Valuation of digitally ordered goods can be challenging due to the use of different pricing methods. Conventional accounting rules are often applied, such as SIF (supplied, installed, and fully paid for) or FOB (free on board) pricing. Translating invoice values into these valuation methods can be complex and require careful consideration.
It is important to note that while financial flows associated with trade, such as payments, are typically present, they are not counted as part of digital trade. The focus is primarily on the ordering and delivery of goods and services themselves. This distinction clarifies the scope of digital trade and provides a more accurate picture of its impact on the economy.
In conclusion, while efforts to measure digital trade have been ongoing, there is still a need for official statistics similar to those available for merchandise trade and services trade. The defined framework for digital trade is firmly in place, but further work is required to collect official statistics, monitor its evolution, and address challenges related to valuation. It is crucial to continue measuring and monitoring digital trade to foster its growth and reap the benefits it offers in terms of access to new markets and economic development.
Barbara
The analysis highlights several key points regarding digitally delivered trade and the challenges of measuring it. Digitally delivered trade is defined as all international trade transactions that are delivered remotely over computer networks. It primarily involves the delivery of services, but there are certain services, such as accommodation and passenger transport services, which require physical presence and cannot be digitally delivered.
One important finding is that digitally deliverable services, which include services delivered remotely through various means such as phone, fax, video calls, emails, apps, and digital intermediation platforms, have a higher value than the services that are actually digitally delivered. In fact, it has been estimated that digital deliverable services were valued at $3.82 trillion in 2022, and they have been growing more rapidly than goods exports and other services that are not digitally delivered. This highlights the significant economic impact and potential of digitally deliverable services.
Efforts are being made to capture and measure the remote delivery of services through surveys and administrative sources. For example, the development of International Trading Services Surveys, as successfully implemented by the USA and Costa Rica, aims to capture exports of digitally delivered services. Additionally, the use of administrative sources, such as VAT data and public expenditure sources, has been advocated to estimate digital service inputs. Argentina has leveraged VAT tax legislation on non-resident providers of digital services, while Ireland has combined multiple publicly available sources to estimate household expenditure on digital services.
However, the measurement of digital trade presents complex challenges, especially for developing economies. Measuring digital trade requires multiple sources and methods, and implementing the recommendations outlined in the handbook can be challenging. To address this, a coordinated statistical building program has been introduced by four institutions to aid developing countries in improving their statistical capacity.
The analysis also emphasizes the importance of tracking digital trade and ordering, as well as the necessity of comprehensive reporting of statistics in this area. Policymakers play a crucial role in the production of statistics for trade, as they can allocate funds for statistical development and ensure that stakeholder consultations are conducted prior to implementing statistical strategies.
Furthermore, the integration of least developed countries into the global trading system is prioritized, and efforts are being made to develop data that allows monitoring opportunities for growth in these countries. A coordinated statistical program has been launched to build up the statistical capacity of least developed countries.
It is noteworthy that digital trade is not solely a business of developed economies, as some developing economies are already fully engaged in digital trade. Particularly, tourism-driven small economies have a significant number of orders made digitally. However, capacity building is required in small economies to accurately measure the scale and value of digital trade, as sometimes they may not be fully aware of the extent of their digital trading activities.
In conclusion, the analysis brings attention to the concept of digitally delivered trade and highlights both the potential and challenges associated with measuring it. The growth and economic impact of digitally deliverable services are significant, and efforts are being made to capture and measure the remote delivery of services. The measurement of digital trade presents complex challenges, particularly for developing economies, but a coordinated statistical-building program aims to address these challenges. The role of policymakers and the development of national strategies are crucial in producing trade statistics and informing policy decisions. It is important to prioritize the integration of least developed countries into the global trading system and provide capacity-building support in small economies to accurately measure and benefit from digital trade.
Moderator
The discussion highlighted several key points regarding digital trade and its measurement. Firstly, it was noted that there is a lack of official statistics on digital trade, which poses challenges for policymakers in making informed decisions. Without reliable and comprehensive statistics, policymakers have to rely on anecdotal information, hindering effective policymaking for all economies and at all levels of development.
The emergence of new business models, such as online platforms, was also discussed. These platforms are becoming important players in economies, but their role, functioning, and contributions are subjects of intense debate. The debate around these new business models highlights the need for a better understanding of their impact on the economy.
The role of the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), and United Nations Conference on Trade and Development (UNCTAD) Durito Handbook in improving the measurement and understanding of digital trade was acknowledged. The handbook, which resulted from the cooperation between these institutions, provides clarification on definitions, compilation guidance for statisticians, and country examples. Its endorsement by countries globally after extensive consultation is a testament to its importance in improving digital trade statistics.
Furthermore, it was highlighted that digitalisation is transforming how goods and services are produced, purchased, and delivered. This digital transformation of the economy and services is reshaping the way businesses operate and creating new opportunities.
Measuring digital trade was recognised as a complex task, requiring multiple sources and methods. Statisticians need to measure not only digitally ordered goods and services but also digitally deliverable services. Customs reporting requirements and trading services surveys need to be modified to include questions specific to digital trade. These modifications are crucial to capture the full extent of digital trade.
Implementing the recommendations of the handbook poses challenges, particularly for developing economies. Considering the complexities in measuring digital trade, the implementation of the handbook's recommendations may be more difficult for these economies. To address this, a coordinated statistical building programme is introduced by the four institutions to assist developing countries in adopting the recommendations and improving their statistical capacities.
The presentation provided extensive information on digital trade statistics and its complexities, shedding light on the importance of collecting data and understanding the landscape of digital trade. It was emphasised that data on digitally deliverable services and digitally ordered trade are significant indicators of the opportunities and challenges in the digital trade arena.
The moderator emphasised the importance of understanding the future of digital trade for economic growth. With digitalisation continuously shaping the global economy, it is crucial to stay abreast of the latest trends and developments.
It was also noted that policymakers play a pivotal role in the production of statistics and have the power to allocate funds for the development of new statistics. Policymakers should consult with relevant stakeholders, including ministries, National Statistics Offices, and central banks, in the development of national strategies for statistics. Considering the specific trade interests and growth opportunities of each country, these strategies should reflect a holistic approach.
Finally, Barbara's contributions were acknowledged as a major achievement in improving knowledge on digital trade. Her input was commended, underscoring the importance of collaborative efforts in advancing research and understanding in this field.
Overall, the discussion highlighted the need for reliable statistics on digital trade, the emergence of new business models, the role of the Durito Handbook, the digital transformation of the economy, the complexities in measuring digital trade, the challenges in implementing the handbook's recommendations, and the importance of understanding the future of digital trade. Policymakers are encouraged to consult with relevant stakeholders and allocate funds for the development of new statistics to drive informed decision-making.
Speakers
A
Antonella
Speech speed
162 words per minute
Speech length
2327 words
Speech time
864 secs
Arguments
There is a need for official statistics on digital trade, similar to those for merchandise trade and services trade.
Supporting facts:
- There are numerous statistics floating around but none of them are official.
- A solid understanding of digital trade is crucial for effective policy making in all economies and at all levels of development.
Topics: Digital trade, Statistics, Policy making
Efforts to measure digital trade have been ongoing and are not new.
Supporting facts:
- WTO had launched the work program on e-commerce in 1998.
- OECD developed a definition for e-commerce in early 2000.
- CTRATEG 20 had been instrumental in pushing the measurement agenda forward since 2018.
Topics: Digital trade, Measurements, e-commerce
There is a clear distinction between the concepts of e-commerce and digital trade.
Supporting facts:
- e-commerce refers to the ordering of goods and services, both domestically and internationally.
- Digital trade includes both ordering and delivery of goods and services but only at an international level.
- Digitally ordered trade is equivalent to international e-commerce.
Topics: Digital trade, e-commerce
It's crucial to understand the value of measuring digitally ordered trade
Supporting facts:
- Digital technologies allow the placement and receipt of orders in a digital manner.
- Digital ordering can increase access to new markets for businesses.
- For consumers, it creates options to buy from different places.
Topics: Digital Trade, Global Markets, E-Commerce
The broad conceptual framework is fairly stable and established, but work is still ongoing.
Supporting facts:
- The production boundary is expected to change, and the framework in place is able to handle that shift implicitly
- There is more work to be done on the empirical side to interpret some definitions and measure certain aspects without much prior experience, such as platforms
Topics: digital trade, policy making, trade negotiations
Digital trade as a means to help countries access new markets
Supporting facts:
- Target in the SDGs by 2020 was to double the share of LDCs
- Digital ordering and digital delivery holds huge potential for all countries
Topics: digital trade, global markets, LDCs
Valuation of digitally ordered goods follows conventional accounting rules
Supporting facts:
- Use of SIF or FOB pricing in valuation
- Translating invoice values into SIF and FOB valuation can be challenging
Topics: digital trade, valuation, digitally ordered goods
The defined framework for digital trade is now firmly in place
Supporting facts:
- The definitions are from a process that has been refined over years
- Next manuals will acknowledge the digital trade definition as it is now
Topics: digital trade, framework, definitions
Report
Efforts to measure digital trade have been ongoing since the late 1990s. The World Trade Organization (WTO) launched a work programme on e-commerce in 1998 to address the growing prominence of digital trade. Additionally, the Organisation for Economic Co-operation and Development (OECD) developed a definition for e-commerce in the early 2000s.
These initiatives reflect the recognition of the need to understand and quantify the impact of digital trade on the global economy. However, despite these efforts, there is still a lack of official statistics on digital trade. Unlike merchandise trade and services trade, there are no comprehensive and standardised measurements for digital trade.
This poses a challenge for policymakers as they require accurate and reliable data to formulate effective policies in all economies and at all levels of development. One of the key arguments is the need for a clear distinction between the concepts of e-commerce and digital trade.
E-commerce refers to the ordering of goods and services, both domestically and internationally. On the other hand, digital trade includes not only the ordering but also the delivery of goods and services, specifically at an international level. It is important to understand this distinction to accurately measure and monitor digital trade.
Monitoring and measurement of digital trade is crucial as it allows for the identification of barriers and problems that may hinder its growth and development. By monitoring its evolution, policymakers can take appropriate actions to address any issues that arise.
Additionally, measuring digital trade can help countries access new markets, increase opportunities for businesses, and contribute to overall economic growth. The broad conceptual framework for digital trade is fairly stable and established. However, there is still ongoing work in interpreting and measuring certain aspects, especially in relation to platforms and other emerging areas.
The framework is designed to be future-proof, capable of accommodating changes in the production boundaries and incorporating new macroeconomic standards that will be introduced in the coming years. Valuation of digitally ordered goods can be challenging due to the use of different pricing methods.
Conventional accounting rules are often applied, such as SIF (supplied, installed, and fully paid for) or FOB (free on board) pricing. Translating invoice values into these valuation methods can be complex and require careful consideration. It is important to note that while financial flows associated with trade, such as payments, are typically present, they are not counted as part of digital trade.
The focus is primarily on the ordering and delivery of goods and services themselves. This distinction clarifies the scope of digital trade and provides a more accurate picture of its impact on the economy. In conclusion, while efforts to measure digital trade have been ongoing, there is still a need for official statistics similar to those available for merchandise trade and services trade.
The defined framework for digital trade is firmly in place, but further work is required to collect official statistics, monitor its evolution, and address challenges related to valuation. It is crucial to continue measuring and monitoring digital trade to foster its growth and reap the benefits it offers in terms of access to new markets and economic development.
A
Audience
Speech speed
145 words per minute
Speech length
1158 words
Speech time
480 secs
Arguments
Audience member questioning the value of gathering information on what is digitally ordered.
Supporting facts:
- Presentation provided a lot of information about statistics and complexities of understanding what digital trade is
- Interest in having better data on actual services trade, digital trade, the flow of money, paying for a service or a good was observed
Topics: Digital Trade, Data Collection, Statistics
Joint efforts of big international organizations have contributed to the establishment of this report
Supporting facts:
- It has been pointed out that the work was performed by a team of four people who have handled the complex tasks in a collegial manner
Topics: Collaboration, International Organizations, Digital Economy Report
Investigating two World Customs Organization categories, low value dutiable and low value non-dutiable, could give insights into B2C trade
Supporting facts:
- These categories are significant because most B2C operations fall within them
Topics: World Customs Organization, B2C Trade
Query about the inclusion of digital payments in reported statistics
Topics: Digital Payments, Digital Currency, Trade in Services
Clarification sought on use of definitions for the publication
Supporting facts:
- Mario Postolov is Regional Advisor in the Trade Division of UNECE
- UNECE has published and continuously updates a glossary on trade facilitation terms
Topics: Trade Facilitation, Publication, Definitions, E-business
Inquiry on inclusion of postal data in the report
Supporting facts:
- Hossam Garbi is responsible for Trade Program in Universal Postal Union
- Majority of international shipments transit through the postal network
Topics: E-commerce, International shipment, Postal data
Report
During the presentation, various topics were discussed, including digital trade, data collection, and statistics. One audience member questioned the value of gathering information on digitally ordered goods and services. Despite this doubt, it was highlighted that there is a growing interest in having better data on actual services trade, digital trade, and the flow of money involved in paying for a service or a good.
The joint efforts of prominent international organisations were also recognised as contributing to the establishment of the report. A team of four people who handled the complex tasks in a collegial manner worked on the report, which received positive sentiment.
The importance of capacity building to support National Statistical Agencies in monitoring progress towards the Sustainable Development Goals (SDGs) was emphasised. It was noted that a major push is being made to improve the abilities of national statistical agencies to monitor progress towards the SDGs.
This alignment with collecting data about the digital economy is crucial. Investigating two World Customs Organization categories, namely low-value dutiable and low-value non-dutiable, could provide valuable insights into business-to-consumer (B2C) trade. These categories are significant as most B2C operations fall within them.
Concerns were raised regarding the accuracy of transactional data for digitally ordered goods. The tension between CIF (Cost, Insurance, and Freight) and FOB (Free on Board) values makes it difficult to capture the exact trade values. It was observed that the backend transactions are not fully capturing the CIF values.
Queries were raised about the inclusion of digital payments in reported statistics, specifically whether digital payments are counted as 'trade in service' or fall into a different category. However, no specific evidence or argument was provided in relation to this query.
Additionally, some attendees sought clarification on the use of definitions for the publication. Mario Postolov, the Regional Advisor in the Trade Division of UNECE, is responsible for publishing and continuously updating a glossary on trade facilitation terms. This glossary is part of the effort to provide clarity in the publication.
Furthermore, the inclusion of postal data in future reports was discussed. Hossam Garbi, responsible for the Trade Program in the Universal Postal Union (UPU), highlighted that the majority of international shipments transit through the postal network. The UPU expressed a positive interest in cooperating for the inclusion of postal data in future reports, demonstrating their global vision on all e-commerce transactions and their efficiency.
In conclusion, the presentation covered various topics related to digital trade, data collection, and statistics. While some doubts and concerns were raised, there was also recognition of the joint efforts of international organisations and the importance of capacity building for National Statistical Agencies.
The inclusion of postal data in future reports and the need for better data on digitally ordered goods and services were discussed.
B
Barbara
Speech speed
135 words per minute
Speech length
3612 words
Speech time
1602 secs
Arguments
Digitally delivered trade is defined as all international trade transactions that are delivered remotely over computer networks
Supporting facts:
- Only services can be digitally delivered
- Delivery can take many forms including phone, fax, video calls, emails, apps and digital intermediation platforms
Topics: Digitally Delivered Trade, International Trade
Some services must be provided in presence, not all services can be digitally delivered
Supporting facts:
- Accommodation services or passenger transport services must be provided in presence
Topics: Digitally Delivered Trade, Services
Multiple definitions on international supply of services through digital technology led to confusion
Supporting facts:
- Many institutions developed different statistical definitions
Topics: International Trade, Digital Services
Digital deliverable services are larger in value than the value of services that were actually digitally delivered.
Supporting facts:
- Digital deliverable services were estimated at $3.82 trillion in 2022
- They have been growing more rapidly than goods exports and other services which are not digitally delivered
Topics: Digitally Delivered Trade, Services
The second edition of the handbook represents a major step forward in the improvement of digital trade statistics and towards the measurement of digital trade.
Supporting facts:
- The handbook provides clarification on definitions, explanations and guidance for statisticians, and shares country experiences
- The handbook has been endorsed by countries through extensive consultations in various statistical forums.
Topics: Digital trade, Statistics, Handbook
A coordinated statistical building program is introduced to the benefit of developing countries in order to ensure they are not left behind in their ability to measure, monitor, and respond to the challenges of digital trade.
Supporting facts:
- The complexity and need for multiple sources and methods to measure digital trade creates challenges particularly for developing economies
Topics: Digital trade, Developing countries, Coordinated statistical building program
The importance of tracking digital trade and ordering
Supporting facts:
- Digital methods allow trading and ordering on a global scale.
- Measurement and tracking of digital ordering provide data necessary for accurate policy decisions.
- Negotiations on these matters are ongoing in the WTO.
Topics: Digital Technology, Trade, Data, Policy Makers
Areas for improvement in understanding and measuring digital trade
Supporting facts:
- Unease in how to classify orders like those through WhatsApp.
- The emergence of AI and technology changes.
- Revision required to cater for these changes in macroeconomic statistical framework.
Topics: Statistics, Digital Trade, Improvement, Artificial Intelligence
Least developed countries' integration into the global trading system is a priority
Supporting facts:
- UNTA, WTO prioritize this integration
- There's focus on developing data for these countries to monitor opportunities for growth
- The start of a coordinated statistical program to build up their capacity in producing this number
Topics: Least Developed Countries, Global Trading System
Digital trade is not just a business of developed economies
Supporting facts:
- Some developing economies are already fully engaged into digital trade
- Tourism-driven small economies have a large number of orders made digitally
Topics: Digital Trade, Developing Economies, Tourism
policymakers play a crucial role in the production of statistics for trade
Supporting facts:
- policymakers can allocate funds for the development of new statistics
- prior consultation with stakeholders is necessary
Topics: digital trade, statistics, policy development
Report
The analysis highlights several key points regarding digitally delivered trade and the challenges of measuring it. Digitally delivered trade is defined as all international trade transactions that are delivered remotely over computer networks. It primarily involves the delivery of services, but there are certain services, such as accommodation and passenger transport services, which require physical presence and cannot be digitally delivered.
One important finding is that digitally deliverable services, which include services delivered remotely through various means such as phone, fax, video calls, emails, apps, and digital intermediation platforms, have a higher value than the services that are actually digitally delivered.
In fact, it has been estimated that digital deliverable services were valued at $3.82 trillion in 2022, and they have been growing more rapidly than goods exports and other services that are not digitally delivered. This highlights the significant economic impact and potential of digitally deliverable services.
Efforts are being made to capture and measure the remote delivery of services through surveys and administrative sources. For example, the development of International Trading Services Surveys, as successfully implemented by the USA and Costa Rica, aims to capture exports of digitally delivered services.
Additionally, the use of administrative sources, such as VAT data and public expenditure sources, has been advocated to estimate digital service inputs. Argentina has leveraged VAT tax legislation on non-resident providers of digital services, while Ireland has combined multiple publicly available sources to estimate household expenditure on digital services.
However, the measurement of digital trade presents complex challenges, especially for developing economies. Measuring digital trade requires multiple sources and methods, and implementing the recommendations outlined in the handbook can be challenging. To address this, a coordinated statistical building program has been introduced by four institutions to aid developing countries in improving their statistical capacity.
The analysis also emphasizes the importance of tracking digital trade and ordering, as well as the necessity of comprehensive reporting of statistics in this area. Policymakers play a crucial role in the production of statistics for trade, as they can allocate funds for statistical development and ensure that stakeholder consultations are conducted prior to implementing statistical strategies.
Furthermore, the integration of least developed countries into the global trading system is prioritized, and efforts are being made to develop data that allows monitoring opportunities for growth in these countries. A coordinated statistical program has been launched to build up the statistical capacity of least developed countries.
It is noteworthy that digital trade is not solely a business of developed economies, as some developing economies are already fully engaged in digital trade. Particularly, tourism-driven small economies have a significant number of orders made digitally. However, capacity building is required in small economies to accurately measure the scale and value of digital trade, as sometimes they may not be fully aware of the extent of their digital trading activities.
In conclusion, the analysis brings attention to the concept of digitally delivered trade and highlights both the potential and challenges associated with measuring it. The growth and economic impact of digitally deliverable services are significant, and efforts are being made to capture and measure the remote delivery of services.
The measurement of digital trade presents complex challenges, particularly for developing economies, but a coordinated statistical-building program aims to address these challenges. The role of policymakers and the development of national strategies are crucial in producing trade statistics and informing policy decisions.
It is important to prioritize the integration of least developed countries into the global trading system and provide capacity-building support in small economies to accurately measure and benefit from digital trade.
D
Dan
Speech speed
168 words per minute
Speech length
3404 words
Speech time
1217 secs
Arguments
Digitally ordered trade is defined as the international sale or purchase of a good or service conducted over computer networks by methods specifically designed for the purposes of receiving or placing orders.
Supporting facts:
- The definition of digitally ordered trade closely mirrors the definition of e-commerce developed by the OECD in the early 2000s.
- Both goods and services can be ordered online.
- All economic sectors can engage in digitally ordered trade.
Topics: Digital Trade, E-Commerce, Business ICT Surveys
Measuring digitally ordered trade can be conducted by using business ICT surveys and merchandise trade customs reporting procedures.
Supporting facts:
- Business ICT surveys are used to measure e-commerce uptake in businesses and can be used to measure the value of digitally ordered transactions.
- Countries including China have modified their merchandise trade customs reporting procedures to identify shipments that are digitally ordered.
Topics: E-Commerce, Digital Economy, Measurement Methods
Other sources such as household surveys, VAT returns data, card payments data, and multinational enterprise surveys can be used for a more complete picture of digitally ordered trade.
Supporting facts:
- Household surveys can examine areas such as ICT usage and expenditure.
- VAT returns and card payments data can provide additional information.
- Multinational enterprise surveys are particularly useful given their significant role in the trading system.
Topics: Digital Trade, E-Commerce, Measurement Methods
Digital intermediation platforms (DIPs) are an important part of the ecosystem for both digital ordering and digital delivery in the trade area.
Supporting facts:
- DIPs are defined as online interfaces that facilitate, for a fee, the direct interaction between multiple buyers and multiple sellers without the platform taking economic ownership of the goods or rendering the services that are being sold.
- DIPs can facilitate access to a wider global market, especially for smaller businesses.
- Transactions on DIPs have significantly increased during the pandemic.
Topics: Digital intermediation platforms, Digital trade, E-commerce
There is a difference between real life and economic transactions regarding DIPs, which the handbook recommends to be disaggregated for accurate trade statistics.
Supporting facts:
- In real life, a buyer pays the DIP, which then subtracts its fees and pays the remainder to the seller.
- In economic terms, these two transactions should be separated: the payment for the actual good/service, and the payment for the intermediation service.
- The handbook recommends collecting information for this disaggregation through enterprise surveys, ICT usage surveys, and potentially card payment data.
Topics: Digital intermediation platforms, Trade statistics
Dan hopes that the core concepts of their handbook will stand the test of time
Supporting facts:
- Countries and partnerships will work to implement the framework and develop unclear parts
Topics: Handbook, Concepts, Time
Dan dreams that there will be a sufficient database for digital trade statistics
Supporting facts:
- Plan to provide help through statistical capacity building coordinators
Topics: Digital trade, database
Digitally deliverable services comprised 55% of total services exports globally in 2022
Supporting facts:
- Digitally deliverable services trade has kept growing even after the pandemic disruption
Topics: Digitally deliverable services, Exports, Global Trade
Digital trade holds potential promise to increase the share of least developed countries in global trade
Supporting facts:
- Target in the SDGs to double the share of LDCs in global trade by 2020 was not met
- Digital ordering and delivery can allow practitioners in remote parts to supply services to businesses and homes worldwide
Topics: Digital Trade, Global Economy, Trade Development
Need to measure digital trade in LDCs to monitor its contribution to achieving revised SDGs target
Supporting facts:
- The share of LDCs in global trade has declined
- Realization of digital trade potential in LDCs has not yet happened
Topics: Digital Trade, Measurement of Trade, Global Goals
Measurement of digital trade should include custom data as well as estimations for non-dutyable trade
Supporting facts:
- Goods trade is measured through customs data and low-value items do not require the same level of customs reporting
- Excluding non-dutyable items from measurement will give only a partial picture
Topics: Digital Trade, Trade Measurement, Customs
Postal data could be used to estimate volume of low-value, digitally ordered goods trade
Supporting facts:
- There's a correlation between the volume of postal packages transiting borders and digital trade
- Volume of postal data can be used to estimate volume of digitally ordered goods that are below customs thresholds
Topics: Digital Trade, Trade Measurement, Postal Data
Report
The analysis explores the significance of digitally ordered trade and the methods used to measure it. Digitally ordered trade refers to the international sale or purchase of goods or services carried out over computer networks. It closely aligns with the definition of e-commerce established by the OECD in the early 2000s.
One notable point emphasized in the analysis is that digitally ordered trade encompasses both goods and services and is applicable to all sectors of the economy. To measure digitally ordered trade, the analysis recommends using business ICT surveys and merchandise trade customs reporting procedures.
Business ICT surveys are valuable tools for assessing the uptake of e-commerce in businesses and can provide insights into the value of digitally ordered transactions. Notably, some countries, including China, have modified their merchandise trade customs reporting procedures to identify shipments that are digitally ordered.
In addition to these methods, the analysis highlights the importance of other sources for gaining a comprehensive understanding of digitally ordered trade. This includes household surveys, which can examine areas such as ICT usage and expenditure, providing valuable data on consumer behavior.
VAT returns data and card payments data are also mentioned as additional sources that can provide insights into digitally ordered trade. Moreover, multinational enterprise surveys are highlighted as particularly useful for understanding digital trade due to the significant role of multinational enterprises in the trading system.
The analysis discusses the role of digital intermediation platforms (DIPs) in the digital trade ecosystem. DIPs are online interfaces that facilitate direct interaction between buyers and sellers, without the platform taking economic ownership of the goods or services being sold.
They offer advantages such as access to a wider global market, particularly beneficial for smaller businesses. The analysis points out that transactions on DIPs have significantly increased during the pandemic. DIPs are seen as key drivers in the digital transformation of trade due to their ability to enable new business models, such as resource sharing, and to facilitate sales through online platforms.
An important insight provided in the analysis is the distinction between real-life transactions and economic transactions involving DIPs. In real life, a buyer pays the DIP, which deducts its fees and pays the remainder to the seller. However, for accurate trade statistics, it is recommended to separate these two transactions: the payment for the actual good or service and the payment for the intermediation service.
To achieve this, enterprise surveys, ICT usage surveys, and potentially card payment data can be utilized to collect the necessary information. The analysis also highlights the potential of DIPs in the digital trade landscape and their role in increasing the share of least developed countries (LDCs) in global trade.
It notes that digital ordering and delivery can enable practitioners in remote areas to supply services to businesses and homes worldwide, thus benefiting LDCs. However, the analysis also mentions that the target of doubling the share of LDCs in global trade by 2020, as part of the Sustainable Development Goals (SDGs), was not met.
Implementing the handbook's framework is seen as crucial for achieving a clearer digital trade landscape. Measurement of digital trade in LDCs is deemed essential to monitor its contribution to achieving the revised SDGs target. The analysis suggests including customs data and estimations for non-dutyable trade to obtain a comprehensive picture when measuring digital trade.
It also proposes using postal data to estimate the volume of low-value, digitally ordered goods trade, as there is a correlation between the volume of postal packages crossing borders and digital trade. In conclusion, the analysis underscores the significance of digitally ordered trade and the need for accurate measurement methods.
It suggests that a more comprehensive understanding can be achieved through surveys, customs reporting procedures, and the utilization of various data sources. Additionally, the analysis highlights the role of DIPs in the digital transformation of trade, particularly in facilitating access to a wider market.
Furthermore, it emphasizes the importance of separating real-life and economic transactions involving DIPs for more accurate trade statistics. Finally, it addresses the potential of digital trade for LDCs and the importance of measuring its impact to achieve the SDGs target.
Overall, the analysis provides valuable insights into the definition, measurement, and impact of digitally ordered trade, as well as the role of digital intermediation platforms and the need for comprehensive measurement methods in the digital trade landscape. It underscores the potential of digital trade in driving economic growth and its implications for achieving sustainable development goals.
M
Moderator
Speech speed
140 words per minute
Speech length
1273 words
Speech time
546 secs
Arguments
Lack of official statistics on digital trade
Supporting facts:
- Although there are many definitions of digital trade floating around, statisticians need a working definition to be able to know what they have to measure.
- Policy makers still have to rely on anecdotal information as there are no official statistics on digial trade.
- Having reliable and comprehensive statistics on digital trade, therefore, is key for effective policymaking for all economies and at all levels of development.
Topics: Digital trade measurement, Official statistics, Policy making, Digital transformation
Emergence of new business models due to digitalization
Supporting facts:
- New business models have also emerged in recent years. For example, online platforms are becoming important players in all our economies with often intense debates regarding their role, functioning and contributions to individual economies.
Topics: New Business Models, Online platforms, Digital Economy
Role of the IMF OECD IMF UNCTAD-Durito Handbook
Supporting facts:
- The handbook is the result of the great and continuous cooperation between the four international institutions.
- This makes a major contribution to improve the measurement and understanding of digital trade.
Topics: Digital Trade Measurement, Handbook, Contribution
Digital transformation of economy and services
Supporting facts:
- Digitalization is transforming how goods and services are produced, purchased and delivered.
- services can increasingly be traded at distance thanks to digitalization.
Topics: Digital Transformation, Economy, Services
The second edition of the handbook is a major improvement in digital trade statistics
Supporting facts:
- It provides clarification on definitions, detailed explanations, compilation guidance for statisticians, and country examples
- It addresses various aspects of digital trade such as digitally delivered goods and services and digital intermediation platforms
- The handbook has been endorsed by countries globally after extensive consultation
Topics: Handbook edition, Digital trade statistics
Provided extensive information on digital trade statistics and its complexities
Supporting facts:
- The presentation by Antonella, Dan, and Barbara offered comprehensive information on digital trade and its complexities
Topics: Digital trade statistics, Complexities understanding digital trade
Dan hopes the concepts of the digital trade framework will stand the test of time as countries implement it and develop it further.
Supporting facts:
- Core concepts of the framework are expected to be relevant over time.
- Countries and partnerships will implement and develop the framework.
- New experiences will be shared across countries to help broaden the framework's implementation.
- Statistical capacity building coordinators are planned to assist countries.
Topics: Digital trade, Trade framework development
Dan aspires to build a database of statistics on digital trade, providing a comprehensive view of the landscape.
Supporting facts:
- Enough data is hoped to be collected to build a database of digital trade statistics.
- Current data on digitally deliverable services shows a growing trend.
Topics: Digital trade, Data collection, Database building
Data on digitally deliverable services and digitally ordered trade are highlighted as significant indicators of the digital trade landscape.
Supporting facts:
- Digitally deliverable services comprised 55% of total services exports globally in 2022.
- A recovery in other services from pandemic disruption was seen.
- Digitally ordered exports for a few countries accounted for 5-18% of total exports.
- Digital trade exports for these countries accounted for between 10-45% of total exports.
Topics: Digital trade, Data on digital trade
Strong team effort in preparing the report by international organizations and their commendation
Supporting facts:
- This work has been done by four people, who worked day and night to come to terms with challenging work
Topics: International Organizations, Report Preparation, Collaboration
Building capacity in national statistical agencies for better monitoring progress towards achieving the SDGs
Supporting facts:
- Simon Lacey from the World Economic Forum stated that there's ongoing big effort to empower national statistical agencies for better monitoring progress towards SDGs
Topics: SDGs, Monitoring Progress, National Statistical Agencies, Capacity Building
Link between digital technologies and achieving SDGs
Supporting facts:
- Simon Lacey posed the question if there is alignment of capacity-building efforts to capture statistics from digital economy and measure how close we are to achieving SDGs
Topics: Digital Technologies, SDGs, Alignment
Looking at different data sources for digitally ordered goods
Supporting facts:
- Preetam Banerjee from the Center for WTO Studies mentioned possibility of looking at WCO categories and transaction types for analyzing digitally ordered goods
Topics: Digitally Ordered Goods, Trade Channels, Data Sources
Digital trade is not limited to developed economies
Supporting facts:
- Some developing economies are already fully engaged in digital trade
- Small, tourism-driven economies often receive a large number of bookings digitally
Topics: Digital trade, Developing economies
Policymakers play a pivotal role in the production of statistics and have the power to allocate funds for the development of new statistics
Supporting facts:
- Policymakers are involved in the production of statistics in any domain including trade, digital or not.
- Because policymakers have the power to allocate funds, they can dictate the development of new statistics.
Topics: Policy making, Statistics
Policymakers should seek consultation from relevant stakeholders and consider the country's trade interests and growth opportunities
Supporting facts:
- Policymakers should consult with the ministries, National Statistics Office, central banks, and other authorities in the development of national strategies for the development of statistics.
- The strategy should reflect the country's specific trade interests and growth opportunities.
Topics: Policy making, Stakeholder Consultation, Trade
Report
The discussion highlighted several key points regarding digital trade and its measurement. Firstly, it was noted that there is a lack of official statistics on digital trade, which poses challenges for policymakers in making informed decisions. Without reliable and comprehensive statistics, policymakers have to rely on anecdotal information, hindering effective policymaking for all economies and at all levels of development.
The emergence of new business models, such as online platforms, was also discussed. These platforms are becoming important players in economies, but their role, functioning, and contributions are subjects of intense debate. The debate around these new business models highlights the need for a better understanding of their impact on the economy.
The role of the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), and United Nations Conference on Trade and Development (UNCTAD) Durito Handbook in improving the measurement and understanding of digital trade was acknowledged. The handbook, which resulted from the cooperation between these institutions, provides clarification on definitions, compilation guidance for statisticians, and country examples.
Its endorsement by countries globally after extensive consultation is a testament to its importance in improving digital trade statistics. Furthermore, it was highlighted that digitalisation is transforming how goods and services are produced, purchased, and delivered. This digital transformation of the economy and services is reshaping the way businesses operate and creating new opportunities.
Measuring digital trade was recognised as a complex task, requiring multiple sources and methods. Statisticians need to measure not only digitally ordered goods and services but also digitally deliverable services. Customs reporting requirements and trading services surveys need to be modified to include questions specific to digital trade.
These modifications are crucial to capture the full extent of digital trade. Implementing the recommendations of the handbook poses challenges, particularly for developing economies. Considering the complexities in measuring digital trade, the implementation of the handbook's recommendations may be more difficult for these economies.
To address this, a coordinated statistical building programme is introduced by the four institutions to assist developing countries in adopting the recommendations and improving their statistical capacities. The presentation provided extensive information on digital trade statistics and its complexities, shedding light on the importance of collecting data and understanding the landscape of digital trade.
It was emphasised that data on digitally deliverable services and digitally ordered trade are significant indicators of the opportunities and challenges in the digital trade arena. The moderator emphasised the importance of understanding the future of digital trade for economic growth.
With digitalisation continuously shaping the global economy, it is crucial to stay abreast of the latest trends and developments. It was also noted that policymakers play a pivotal role in the production of statistics and have the power to allocate funds for the development of new statistics.
Policymakers should consult with relevant stakeholders, including ministries, National Statistics Offices, and central banks, in the development of national strategies for statistics. Considering the specific trade interests and growth opportunities of each country, these strategies should reflect a holistic approach.
Finally, Barbara's contributions were acknowledged as a major achievement in improving knowledge on digital trade. Her input was commended, underscoring the importance of collaborative efforts in advancing research and understanding in this field. Overall, the discussion highlighted the need for reliable statistics on digital trade, the emergence of new business models, the role of the Durito Handbook, the digital transformation of the economy, the complexities in measuring digital trade, the challenges in implementing the handbook's recommendations, and the importance of understanding the future of digital trade.
Policymakers are encouraged to consult with relevant stakeholders and allocate funds for the development of new statistics to drive informed decision-making.